IRS to Phase Out Paper Refund Checks - What You Need to Know

If you’ve ever waited weeks for a paper refund check in the mail (or worse, had one misplaced), there’s some news you’ll want to know: starting on September 30, 2025, the IRS will begin phasing out paper tax refund checks for individual taxpayers.

This shift is part of a broader push toward digital payments, and it’s intended to make refunds faster, safer, and more efficient. Here’s what the change means for you, and how Kamish & Associates can help you stay ahead.

What’s Changing (And Why)

1. No More Paper Checks (for most taxpayers)

Paper refund checks will be discontinued to the extent permitted by law. Instead, refunds will be delivered through direct deposit or other electronic means.

2. Speed & Security

• Paper checks are significantly more vulnerable, they’re over 16× more likely to be lost, stolen, altered, or delayed than electronic payments.

• With electronic refunds, you can get your money in under 21 days (if you file electronically, use direct deposit, and there are no issues with the return). 

• Paper refunds, on the other hand, may take 6 weeks or more.

3. Support for Those Without Bank Accounts

If you don’t have a bank account, you won’t be left stranded. Alternatives like prepaid debit cards, digital wallets, and limited exceptions will be made available.

4. What Remains the Same

• How you file your taxes does not change. You’ll still use the same IRS forms and procedures.

• The IRS plans to publish more detailed guidance for the 2025 tax returns ahead of the 2026 filing season.

• Until further notice, continue using existing payment methods (for taxes owed). 

What You Should Do Now

1. Verify your bank account detailsMake sure your bank routing and account numbers are accurate on your tax return.

   
   

2. Open a bank account if you don’t have oneIf you don’t have a checking or savings account, consider opening one. Federal resources like FDIC’s GetBanked and MyCreditUnion.gov can help.

   
   

3. Watch for IRS updatesThe IRS will issue more guidance regarding tax filing for 2025 before the 2026 season begins. 

   
   

4. Talk with a tax professionalIf you have any special circumstances - such as lacking a bank account, or needing to use an alternative payment method - a tax pro can help you navigate options.

   
   

How Kamish & Associates Can Help

• Ensure Direct Deposit SetupWe’ll help you input or update your bank information correctly to avoid refund delays.

  
  

• Advise On AlternativesIf you can’t use direct deposit, we’ll guide you through prepaid card or digital wallet options and ensure you qualify for any allowed exceptions.

  
  

• Stay on Top of IRS ChangesWe’ll monitor IRS announcements and relay what matters to you. When new rules or updates drop ahead of the next tax season, we’ll make sure you’re in the loop.

  
  

• Catch Errors Before They Cost YouMistakes in routing or account numbers can cause bounced deposits or delays. We’ll review your return carefully to minimize risk.

  
  

If you have any questions about how this change affects you, or if you want help preparing your 2025 tax return under the new refund rules, reach out to us.

At Kamish & Associates, our goal is to make the process as smooth and stress-free as possible.

Let’s get prepared, together.